Reducing dollar holdings and disconnecting one's currency from a peg to the dollar or from similar interest rates is taking hold slowly around the world. So far Kuwait, Saudi Arabia, and now Vietnam and Qatar. If this movement gets rolling the dollar will sink deeper into the dumpster and interest rates will be on an elevator - long term interest rates that is.
Ambrose Evans-Pritchard has an excellent analysis of where we are financially. We can thank Alan Greenspan's loose monetary policies for the mess. Pritchard: Yes, the Fed made a grievous error of keeping rates at 1pc until June 2004 – unforgivable in hindsight. It then fell asleep, claiming the subprime crunch was “contained” when it had in reality become systemic. Do tell.
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